Need help with an ARM in Kansas City

MeinKC · Joined: 04 Jun 2008 Posts: 1 Location: Kansas City, MO

Hi all, I've got a question about my mortage. We own (live in) a house on the Missouri side of Kansas City with a first and a second mortgage. The first is an ARM and the second is fixed, they are held by the same company which purchased them from the original lendor. The ARM is due to reset in May 2009 and will raise my payment about $850 a month which we can't afford.

Here's the (big) problem, we owe about $350,000 on both mortgages ($305,000 on the 1st and $45,000 on the 2nd) but our house will only appraise for $310,000 maybe $320,000.

Our combined income is $100,000 a year (salaried) and our credit score hovers around 750 with all the reporting agencies. I've got about $5,000 in cash and another $12,000 in a CD that is set aside for my son's college. In over 12 years of credit history we have had no judgements, bankruptcies, foreclosures, collections, back child support, tax liens nor have we ever had a late payment on anything.

We pay about $700 a month in credit payments and $550 for 2 vehicles.

What are my options for getting out of this mess? I only want to refi to get out of the ARM, I have no intentions of trying to skirt what we owe.

Thanks for any help!

prestonian · Joined: 19 Sep 2006 Posts: 15

MeinKC,
The deal is straight and clear, all depends on the appraised value of your house, we can refinance your house max of 97%LTV (i.e. if your Home value is $100000 we can refinance your house for the balance max of $97000)

When we talk about refinance we only give the best fixed rate for entire term with no pre payment penalties and no points and as far i see as per your credit you mentioned you will certainly get the best rate available and that is for sure

However i would say lets get your house appraised first becuase that is what is the initial decider for this refinance and rest leave it to us

If you need any mroe clarifications call me at 866-207-5340 extn:1103 (Marshall)

liverichly · Joined: 10 Feb 2005 Posts: 195 Location: Orange County, CA

Outside of Preston's advertisement, if you've made all of your payments on time, you might want to approach your mortgage lender and ask them to modify the existing terms to extend out the fixed rate portion on your loan. Might not be able to extend in through the term of your loan but you could get it extended for perhaps half a dozen years or so. I'd encourage you to visit the website at http://www.loansafe.org/forum/index.php to read up on how lenders are responding to loan modifications and see if anyone there has a similar story with your lender who was also succesful. I can tell you now with a loan amount exceeding your appraised value by $30-40k, and you not having the funds to bring in to refinance, you'll either have to borrow from family to make it work or try the loan modification route.